Tata Motors Share Price increased by 1.26% today during early trading hours, touching ₹717.45. Let’s find out what’s driving this significant rally.
Tata Motors Limited (NSE: TATAMOTORS) shares are witnessing a surge in early market hours, rising by ₹8.95 (+1.26%) to ₹717.45 as of 12:50 PM (IST) on May 12, 2025. The stock opened at ₹728.00 and reached an intraday high of ₹732.00, driven by strong buying interest.
Monday, May 12, 2025, Status of Major Indices
On Monday, May 12, 2025, at around 12:50 PM, the BSE Sensex rose by 2258.39 points, or 2.84 percent, to 81,712.86 compared to the previous close of 79,454.47. The Nifty 50 Index has risen by 712.05 points, or 2.97 percent, to 24,720.05. Meanwhile, the Nifty Midcap 100 Index rose by 1744.45 points, or 3.28 percent, to 54,973.75.
Tata Motors Market Cap and Valuation
- Market Cap: ₹ 2,63,437 Crore
- Free Float Market Cap: ₹ 1,49,844.14 Crore
- Face Value: ₹2
- P/E Ratio: 8.19
- Strong Financial Performance: Recent earnings reports show strong growth, particularly in the electric vehicle (EV) segment, which increases investor confidence.
- Strategic Demerger Approval: Overwhelming shareholder approval (99.99%) for splitting the commercial and passenger vehicle businesses, which is expected to unlock value and increase valuations.
- EV Segment Expansion: The launch of models such as the Curvv EV Dark Edition, as well as plans for new EV launches, helps Tata Motors maintain its lead in India’s EV market.
- Technical Breakout: The stock crossed key resistance levels (e.g., ₹710), indicating strong buying momentum and investor optimism.
Sectoral Performance: Auto Sector Stocks in Focus
- Auto Sector Momentum: Rising demand for passenger vehicles and easing supply chain disruptions are boosting sentiment in the Indian auto sector.
- Positive Market Sentiment: Indian markets, including major indices like the Sensex and the Nifty, are witnessing strong buying interest. This overall bullish sentiment has positively supported auto sector stocks, contributing to their upward momentum.
- India-UK FTA Benefits: A Free trade agreement with the United Kingdom will reduce tariffs, which results in increased exports for Indian automakers.
- EV Policy Support: Maharashtra’s new EV policy, combined with government incentives for sustainable mobility, improves the auto sector’s growth prospects.
Technical Levels to Watch
- Immediate Support: ₹678.33 (Strong buying interest above this level)
- Immediate Resistance: ₹763.30 (A breakout above this could lead to recovery)
- Current Momentum: Bullish above ₹708.50.
Key Factors to Watch
Investors should continue to monitor:
- Rising or falling FII/DII stake and promoter shareholding trends.
- News about new product launches, JVs, global expansion, or regulatory changes.
- Broader market trends and investor sentiment.
Disclaimer
This article is for educational purposes only. It is not a stock recommendation and should not be treated as such. Please ask your financial advisor before making any investment decision.
Also Read: Tata Motors Share Price Target 2025 to 2050.
